Mercedes-Benz Van Insurance. Product Disclosure Statement and Policy Document

Transcription

1 Mercedes-Benz Van Insurance Product Disclosure Statement and Policy Document

2

3 Mercedes-Benz Insurance About this booklet This booklet is a Product Disclosure Statement (PDS) and is also the Policy Wording. Other documents may comprise the PDS and we will tell you if this is the case in the relevant document. This booklet has two (2) parts: Important Information to help you understand the insurance, and the Policy Wording, which sets out terms and condition of the cover provided. It is up to you to choose the cover you need. Any advice in this booklet is general in nature only and has not considered your objectives, financial situation or needs. You should carefully consider the information provided having regard to your personal circumstances to decide if it is right for you. Updating our PDS We may update the information contained in this PDS when necessary. A paper copy of any updated information is available to you at no cost by calling us. We will issue you with a new PDS or a supplementary PDS, where the update is to rectify a misleading or deceptive statement or omission, which is materially adverse from the point of view of a reasonable person deciding whether to obtain or renew this insurance. For more information Please take the time to read through this booklet and if you have any questions or need more information, please contact Mercedes-Benz Financial Services. About Mercedes-Benz Financial Services Welcome and thank you for choosing Mercedes-Benz Financial Services Australia Pty Limited ABN , AFS Licence No (Mercedes-Benz Insurance). Mercedes-Benz Insurance utilises years of local expertise combined with global experience to offer a range of multi-featured products and services to our customers. As members of the worldwide Daimler Group, Mercedes- Benz Insurance is committed to continuous improvement of our products and services, and aspires to insurance industry best practice procedures in all aspects of its business. This policy is underwritten by QBE Insurance (Australia) Limited, one of Australia s largest general insurers. About QBE Australia QBE Insurance (Australia) Limited ABN AFSL is a member of the QBE Insurance Group Limited ABN (ASX: QBE). QBE Insurance Group is Australia s largest international general insurance and reinsurance group, and one of the top 25 insurers and reinsurers worldwide. The company has been operating in Australia since 1886 and continues to provide insurance solutions that are focused on the needs of policyholders. QBE is a respected name in Australian insurance, backed by sizeable assets, and well known as a strong and financially secure organisation. 1

4 Date of preparation: 1 April 2013 Date effective: 1 April 2014 QM

5 Mercedes-Benz Insurance Index About this booklet 1 Updating our PDS 1 For more information 1 About Mercedes-Benz Financial Services 1 About QBE Australia 1 Important Information 4 Duty of disclosure 4 Privacy 6 Significant risks 11 The cost of this Policy 12 How to make a claim 13 Taxation implications 13 Cooling-off information 13 The General Insurance Code of Practice 13 Dispute resolution 14 Financial Claims Scheme 14 Policy Wording 14 Our agreement with you 14 Your Policy 15 Paying your premium 15 Words with special meanings 16 Comprehensive cover 18 Section 1: Loss, damage or theft of your vehicle 19 Section 2: Third party liability - (applicable to registered vehicles only) 20 Additional benefits 23 Special clauses 29 General conditions 32 General exclusions 35 Claims 39 What you must pay if you make a claim - Excess 42 3

6 Important Information The information provided in this section includes high level information about this Policy including your duty of disclosure, privacy, how to make a claim, our dispute resolution process and other relevant information. This section may also set out other information such as options in cover you can choose from, factors that affect the cost and any cooling off rights. The Policy Wording section sets out the detailed terms, conditions and exclusions relating to the insurance. If we issue you with a Policy, you will be given a Policy Schedule. The Policy Schedule sets out the specific terms applicable to your cover and should be read together with the Policy Wording. The Policy Wording and Policy Schedule form your legal contract with us so please keep them in a safe place for future reference. You should check the Policy Schedule, or renewal schedule if you are issued one, when you receive it to ensure it accurately states what you have insured. Duty of disclosure New business What you must tell us When answering our questions, you must be honest and you have a duty under the law to tell us anything known to you, and which a reasonable person in the circumstances would include in answer to the questions. We will use the answers in deciding whether to insure you and anyone else to be insured under this insurance and on what terms. Who needs to tell us It is important that you understand you are answering our questions in this way for yourself and anyone else who is an insured under this insurance. If you do not tell us If you do not answer our questions in this way, we may reduce or refuse to pay a claim, or cancel your insurance. If you answer our questions fraudulently, we may refuse to pay a claim and treat the insurance as never having worked. Renewals, variations, extensions and reinstatements Once your insurance is entered into and is no longer new business then your duty to us changes. You are required before you renew, vary, extend or reinstate your insurance, to tell us everything you know and that a reasonable person in the circumstances could be expected to know, is a matter that is relevant to our decision whether to insure you, and anyone else to be insured under this insurance, and if so, on what terms. 4

7 Mercedes-Benz Insurance You do not have to tell us about any matter: that diminishes the risk to be undertaken by us; that is of common knowledge; that we know or should know or, in the ordinary course of our business, we ought to know; as to which compliance with your duty is waived by us. Non-disclosure If you fail to comply with your duty of disclosure, we may be entitled to reduce our liability under the insurance in respect of a claim or may cancel the insurance. If your non-disclosure is fraudulent, we may also have the option of avoiding the insurance from its beginning. You must disclose to us all previous claims You are asked at the time you take out this insurance to give us full and correct details concerning any: renewal or insurance policy declined, cancelled or refused, or where any excess was imposed; claim refused by an insurer; claim made; criminal conviction or finding of guilt for an offence, in relation to you and your family because any of these may affect the premium and extent of insurance. For example, we may be entitled to: charge you an additional premium; impose (back-dated) restrictions including declining your insurance back to when this information should have been provided; decline to insure your building, contents or valuables; refuse a claim. When renewing your Policy with us you must also advise us of any changes to your: claims; insurance; or criminal history. We will notify you in writing of the effect a change may have on your renewal. 5

8 Privacy All companies in the QBE Group are committed to safeguarding your privacy and the confidentiality of your personal information. QBE collects only that personal information from or about you for the purpose of assessing your application for insurance and administering your insurance policy, including any claim made by you. QBE will only use and disclose your personal information for a purpose you would reasonably expect. We will request your consent for any other purpose. Without this personal information we may not be able to issue insurance cover, administer your insurance or process your claim. Our aim is to always have accurate and up-to-date information. When you receive a Policy Schedule, Certificate of Insurance, Renewal or other document from us, you should contact us if the information is not correct. QBE uses the services of a related company located in the Philippines to provide Call Centre sales and claims handling, accounting and administration services to QBE in Australia. QBE or our authorised agent may collect or disclose your personal information from or to: any person authorised by you; a mail house, records management company or technology services provider (for printing and/ or delivery of mail and , including secure storage and management of our records). These companies may be located or the records stored using Cloud technology overseas, including in India, Ireland, USA or the Netherlands; a financier whose name appears on your Policy Schedule (for the purpose of confirming the currency of your Policy or when you have a claim and the insured property is a total loss, to confirm if the financier has a current interest); an organisation that provides you with banking facilities (for the purpose of arranging direct debit or other payment transactions or confirming payments made by you to us); a financial services provider or our agent who is arranging your insurance (for the purpose of confirming your personal and insurance details); another person named as a co-insured on your Policy (for the purpose of confirming if full disclosure has been made to us); another insurer (to obtain confirmation of your no claim bonus or to assess insurance risks or to assist with an investigation); our reinsurer that may be located overseas (for the purpose of seeking recovery from them); a dispute resolution organisation such as the Financial Ombudsman Service (for the purpose of resolving disputes between QBE and you or between QBE and a third party); a company to conduct surveys on our behalf for the purpose of improved customer services; and an insurance reference bureau (to record any claims you may make upon us). 6

9 Mercedes-Benz Insurance In addition to the above, in the event of a claim, QBE or our authorised agent may disclose your personal information: to a repairer or supplier (for the purpose of repairing or replacing your insured items); to an investigator, assessor (for the purpose of investigating or assessing your claim); to a lawyer or recovery agent (for the purpose of defending an action by a third party against you or recovering our costs including your excess or seeking a legal opinion regarding the acceptance of a claim); to a witness to a claim (for the purpose of obtaining a witness statement); to another party to a claim (for the purpose of obtaining a statement from them or seeking recovery from them or to defend an action by a third party). Personal information (about you) may also be obtained from the above people or organisations. In addition we will: give you the opportunity to find out what personal information we hold about you and when necessary, correct any errors in this information. Generally we will do this without restriction or charge; and provide our dispute resolution procedures to you, should you wish to complain about how we handle your personal information. To obtain further information about our Privacy Policy or to request access to or correct your personal information, please compliance.manager@qbe.com. To make a complaint please complaints@qbe.com. Significant benefits and features If your vehicle is registered: We believe the most significant benefits of this Policy are that it protects: (a) (b) your financial investment in your motor vehicle if it is stolen or damaged due to an incident which is covered by the section: Loss, damage, theft or attempted theft of your vehicle in this Policy, you for your legal liability to third parties in the event of an incident which is covered by the liability cover section of this Policy. If your vehicle is unregistered: (a) your financial investment in your motor vehicle if it is stolen or damaged due to an incident which is covered by the section: Loss, damage, theft or attempted theft of your vehicle in this Policy. 7

10 This Policy also provides the additional benefits below following loss or damage covered under this Policy: Additional benefits Comprehensive Cover removal of vehicle debris - up to $50,000, car sharing, waiver of subrogation, choice of repairer, towing costs following an accident, redelivery of your vehicle to your parked address after insured repairs where the repairer is more than 150 kilometres from your vehicles normal parked address - $3,000, recovery costs following theft - $5,000, cost of accommodation and repatriating your driver following theft or accident covered under this Policy up to $3,000: where your vehicle was more than 150km from its normal parked address or point of departure; and the vehicle was being used in connection with your business; costs exclude emergency medical transportation; trailer cover $1,000 < 2,000 kg gvm, non owned trailer $75,000, automatic additions of additional or replacement vehicles: up to thirty (30) days; up to $300,000; signwriting: replacement cost; maritime liability if your vehicle is being transported by sea between Australian ports we cover your contribution if you are required to contribute to general average, new vehicle replacement: up to twenty four (24) months from 1st registration; hire car cost following theft: up to $5,000; up to thirty (30) days; 8

11 Mercedes-Benz Insurance significant legal liability benefits include special clauses available for vehicles with a gross vehicle mass of less than 3,500 kilograms Additional benefits faultless no claim discount, driver s personal property not otherwise insured, for your driver s wearing apparel and personal property while contained in your vehicle: up to $2,000; excluding money, securities, jewellery, furs, mobile phones, tools of trade, laptop computers, GPS and portable music devices; windscreen claim benefit: no loss of No Claim Bonus ; driver accident compensation benefit up to $100,000, funeral expenses up to $5,000, locks and key replacement and recoding up to $5,000, fire brigade or emergency services charges up to $20,000, tyre replacement, lifetime repair guarantee, emergency repairs $2,000, vehicle recovery costs $20,000, damage to property - $32,500,000, transporting of dangerous goods $1,000,000, pollution or contamination cleanup costs of water, land or the atmosphere $1,000,000. agreed value, hire car costs following an accident, protected No Claim Discount, tools and equipment, and windscreen excess protection 9

12 special clauses available for vehicles with a gross vehicle mass 3,500 kilograms and greater Additional benefits tools and equipment, windscreen excess protection, dangerous goods increased limits, downtime cover, and dry hire cover You should ask Mercedes-Benz Financial Services about these extensions and their cost. The Policy does not cover certain things Claims may be refused in certain circumstances. Please refer to the Policy Wording for full details of the terms and conditions of cover and exclusions. This Policy does not cover: damage to your vehicle s tyres caused by application of brakes, road punctures, cuts or bursting, unless caused as a result of an incident covered under this Policy or by people acting maliciously, any additional costs, such as but not limited to hire car costs (other than those covered elsewhere in this Policy), because you cannot use your vehicle even though your vehicle may not be available following loss or damage covered under this Policy, theft of your vehicle resulting from it being test driven for sale and you or an employee of yours did not accompany the prospective purchaser, any liability or obligation assumed by you under any contract, agreement or warranty which would not have otherwise arisen or been implied by law, loss of or damage to your vehicle or liability if your vehicle is used in an unsafe or unroadworthy condition unless such condition could not reasonably be detected by you. This exclusion will not apply if you prove that the loss, damage or liability was not caused or contributed to by such unsafe or unroadworthy condition, loss of or damage to your vehicle or liability if your vehicle is being driven by: you or by any person with your consent who is not licensed under any relevant law to drive such a vehicle, or anyone whose faculties are impaired by any drug or intoxicating liquor (as defined under additional exclusion 12), or anyone whose blood alcohol reading exceeds the legal limit (subject to any laws to the contrary), or 10

13 Mercedes-Benz Insurance anyone who following an accident, refuses to provide or allow the taking of a sample of breath, blood or urine for testing or analysis as required by the law of any State or Territory in which the accident occurred. However we will cover you if you have allowed that person to drive your vehicle and you can prove that you were not aware that your vehicle was being driven by or in charge of that person when they were so affected or unlicensed. loss of or damage to your vehicle or liability whilst your vehicle is being used in any experiment or type of test or in preparation for or involved in racing, speed testing, reliability trial, pace making, hill climbing, trial or demonstration other than for resale purposes on public roads, loss of or damage to your vehicle or liability if you: carry or tow a load, or carry a number of passengers, in excess of that for which your vehicle was designed. However we will cover you if you prove that the loss, damage or liability was not caused by or contributed to by any such greater load or number of passengers: loss of or damage to your vehicle or liability whilst your vehicle is being used for conveyance of passengers for hire, fare or reward, any vehicle running on rails or which is not designed to run solely on solid ground, loss of or damage to your vehicle or liability outside Australia except where your vehicle is being transported by sea between Australian ports, loss of or damage to your vehicle or liability if your vehicle is being driven by or in the charge of any person over the age of eighty (80) unless you have told us about them and we have noted them on the Policy Schedule, any liability under the section Third Party Liability, if your vehicle or substitute vehicle is unregistered. However we will cover your liability in respect of the unregistered vehicle on a public road, if you have obtained the appropriate permit to drive the unregistered vehicle on a public road, loss of or damage to your vehicle resulting from your vehicle failing to cross any waterway, floodway, watercourse or any area affected by tidal change and where the depth of such water exceeded 0.6 metres. Significant risks This Policy may not match your expectations This Policy may not match your expectations (for example, because an exclusion applies). You should read the entire PDS (and in particular the Policy Wording) carefully. Please ask Mercedes-Benz Financial Services if you are unsure about any aspect of this Policy. 11

14 Your sum insured may not be adequate It is important that your vehicle and all accessories are insured for their current market values, as our liability is limited to the sum insured you declare to us or the market values of your vehicle and all its accessories, whichever is the lesser. The amount of any claim may be reduced The amount of any claim made against the Policy may be reduced: (a) (b) if you do not comply with any Policy condition; where an excess applies. Excess means the first amount which you must contribute to any claim you make under this Policy. Depending on the age or experience of the driver and whether a rigid body tipper or tipping trailer is insured under this Policy, you may have to contribute more than one excess. Where an excess applies, the type and the amount will be shown in your Policy Schedule. If we accept your claim, we will deduct the excess shown in your current Policy Schedule from any amount we pay under your claim. Standard excess is the first amount you will have to contribute to every claim. Age or inexperienced driver excess is in addition to the standard excess and applies where a vehicle is driven by a person: under the age of twenty one (21), or aged twenty one (21) but under the age of twenty five (25), or aged twenty five (25)or more but who has not held an Australian driver s licence for two (2) or more years for the type of vehicle being driven at the time of the incident. This excess does not apply if the only damage to your vehicle is a broken windscreen, or window glass, or caused by storm or hail damage. Undeclared driver excess may be applicable. Learner driver excess may be applicable. Outside radius excess may be applicable for vehicles with a gross vehicle mass 3,500 kilograms or more. There are some circumstances where an excess will not apply. Please refer to the section under claims headed What you must pay if you make a claim - Excess in the Policy Wording section of this booklet. The cost of this Policy The total premium is the amount we charge you for this Policy. It includes the amount we have calculated for the risk and the taxes and government charges applicable. The premium will be shown on the Policy Schedule. 12

15 Mercedes-Benz Insurance When calculating the premium we take a number of factors into account. These factors and the degree to which they affect the premium will depend on the information you give us, and the level of cover you choose. The main factors that impact your premium include: the make, model and type of the insured vehicle, the place where the vehicle is garaged, previous insurance and claims history of the insured person and any drivers you have told us about. How to make a claim Full details of what you must do for us to consider your claim are provided in the Claims section at the end of this booklet. To make a claim under this Policy please contact Mercedes-Benz Financial Services on We will only accept responsibility for repairs or payments to third parties under a claim where you have told us about them beforehand and we have accepted your claim. In an emergency outside normal business hours you may ring our emergency service on for assistance. Taxation implications There may be other taxation implications affecting you, depending upon your own circumstances. We recommend that you seek professional advice. Cooling-off information If you want to return your Policy after your decision to buy it, you may cancel it and receive a full refund. This cooling off right does not apply if you have made or are entitled to make a claim. Even after the cooling off period ends, you still have cancellation rights. However, we may deduct certain amounts from any refund (refer to the Policy Wording under the section General conditions - Cancelling your Policy). To cancel your Policy within the cooling off period you must submit your request to us within twenty one (21) days of the commencement of your Policy. You can send your request to Mercedes-Benz Financial Services electronically or in writing. The General Insurance Code of Practice QBE Insurance (Australia) Limited is a signatory to the General Insurance Code of Practice. The Code aims to: promote more informed relations between insurers and their customers; improve consumer confidence in the general insurance industry; 13

16 provide better mechanisms for the resolution of complaints and disputes between insurers and their customers; and commit insurers and the professionals they rely upon to higher standards of customer service. Dispute resolution We will do everything possible to provide a quality service to you. However, we recognise that occasionally there may be some aspect of our service or a decision we have made that you wish to query or draw to our attention. We have a complaints and dispute resolution procedure which undertakes to provide an answer to your complaint within fifteen (15) working days. If you would like to make a complaint or access our internal dispute resolution service please contact your nearest QBE office and ask to speak to a dispute resolution specialist. If you are not happy with our answer, or we have taken more than fifteen (15) working days to respond, you may take your complaint to the Financial Ombudsman Service (FOS), an ASIC approved external dispute resolution body. FOS resolves certain insurance disputes between consumers and insurers and will provide an independent review at no cost to you. QBE is bound by the determination of FOS but the determination is not binding on you. Financial Claims Scheme This Policy is a protected policy under the Financial Claims Scheme (FCS), which protects certain insureds and claimants in the event of an insurer becoming insolvent. In the unlikely event of QBE becoming insolvent you may be entitled to access the FCS, provided you meet the eligibility criteria. More information may be obtained from APRA - or Policy Wording This Policy is underwritten by QBE Insurance (Australia) Limited ABN , AFS Licence No of 82 Pitt Street, Sydney NSW Our agreement with you This Policy is a legal contract between you and us. You pay us the premium and we provide you with the cover you have chosen as set out in the Policy, occurring during the period of insurance shown on your Policy Schedule or any renewal period. This policy is designed for vehicles with a gross vehicle mass of less than 12,000 kilograms. The amount of any excess that applies to your Policy is shown on your Policy Schedule. 14

17 Mercedes-Benz Insurance Your Policy Your Policy consists of the Policy Wording in this booklet and the Policy Schedule we give you. Please keep them in a safe place for future reference. Please check the Policy Schedule details to ensure it accurately states what you have insured. Be sure to check that the limits and sums insured are adequate. The general exclusions and general conditions apply to all sections of this Policy. Paying your premium You can pay your premium: in one annual payment by cash, cheque, credit card or EFTPOS, or in monthly instalments by direct debit from your credit card or from your account with your financial institution. Paying your annual premium You must pay your annual premium by the due date to your financial services provider. If your premium is unpaid by this date or your payment is dishonoured this Policy will not operate and there will be no cover. Paying your instalment premium If you are paying your premium for the first time by instalments we will deduct instalments each month on the day of the month that you nominate as your payment date. If you are renewing your Policy and you paid your previous Policy by instalments, we will continue to deduct instalments for your renewed Policy on the day of the month you previously nominated as your payment date, unless you tell us otherwise. If you have nominated the 29th, 30th or 31st of the month as your payment date, we will deduct your instalment payment on the next day if those dates don t occur in a month. Details of your instalments are shown on your Policy Schedule. If your first instalment of premium when you take out your Policy or renew it is dishonoured, this Policy will not operate and there will be no cover. We will not pay a claim under this Policy if, at the time the claim occurred, any instalment of premium has remained unpaid for fourteen (14) days or more. 15

18 If any instalment of premium has remained unpaid for 1 month, we may cancel this Policy. We will send you a notice giving you details of the action we intend to take and when any cancellation will become effective. We are entitled to deduct from any amount we pay you under a claim any unpaid premium or instalment of premium. If you are paying your premium in instalments by direct debit from your credit card or financial institution account, you must tell us if those details change. You must do this no later than seven (7) days before your next instalment is due. Words with special meanings Some key words and terms used in this Policy have a special meaning. If words and terms are only used in one (1) section of the Policy, we will describe their special meaning in that section. Wherever the following words or terms are used in the Policy, they mean what is set out below: Word or term airfield airside dangerous goods Financier gross vehicle mass market value period of insurance Policy Schedule pollution security interest Meaning An area of land set aside for the take-off, landing, taxiing, parking and maintenance of aircraft. The section of an airfield where aircraft are situated and operated. Goods as defined by The Australian Code for the Transport of Dangerous Goods by Road and Rail. The person or entity with a security interest in your vehicle. The maximum legally allowed weight of your vehicle and the goods it can legally carry. The cash value of a vehicle of the same age, type and condition, in your local area, but excluding costs and charges for registration, stamp duty transfer and any dealer warranty costs. The period shown in the Policy Schedule. The schedule of insurance or any endorsement schedule we give you. The presence in or introduction into the environment of a substance that causes or is likely to cause degradation of the land, resulting in actual or potential harm to the health or safety of human beings, animals or other terrestrial life or ecosystems. Means a security interest as defined in section 12 of the Personal Property Securities Act 2009 (Cth). 16

19 Mercedes-Benz Insurance Word or term total loss use of the vehicle Meaning A vehicle will be declared a total loss, if: the cost to repair your vehicle plus the value of any salvage (if applicable) exceeds the market value, or your vehicle is stolen and not recovered within a reasonable period of time as determined by us. We will settle the claim on the basis of market value or the sum insured whichever is the lesser or agreed value depending on the cover stated on the Policy Schedule. Private use Your vehicle must be registered for Private use, only in your name and used for the following purposes: social, domestic and pleasure purposes, demonstration for sale, in connection with servicing, repairing and subsequent testing, for tuition, as long as it is not for payment, towing a caravan, trailer or vehicle, as long as it is not for payment, driving to or from work, in connection with your occupation or business as, long as: it is driven only by you, and the business use does not exceed 20% of the vehicle s usage. Executive use Your vehicle is registered for business use, but is used only for the following purposes: social, domestic and pleasure purposes, demonstration for sale, in connection with servicing, repairing and subsequent testing, for tuition, as long as it is not for payment, towing a caravan, trailer or vehicle, as long as it is not for payment. 17

20 Word or term Meaning Business/commercial use Your vehicle is registered for Business use, but is used only for the following purposes: in connection with your business or occupation, social, domestic and pleasure purposes, demonstration for sale, in connection with servicing, repairing and subsequent testing, for tuition, as long as it is not for payment, towing a caravan, trailer or vehicle, as long as it is not for payment. we, our or us QBE Insurance (Australia) Limited, ABN you or your The person(s), companies or firms named on the current Policy Schedule as the Insured. your vehicle Any type of machine on wheels or self laid track made or intended to be propelled by other than manual or animal power and any trailer or other attachment made or intended to be drawn by any such machine. The vehicle is described on the Policy Schedule. Comprehensive cover All sections of this Policy will operate. If your vehicle is registered this cover provides: (a) (b) (c) insurance against theft or accidental loss or damage to your vehicle, additional benefits - as set out in the Additional benefits section, insurance against legal liability for damage caused by your vehicle to the property of other people - as described in section 2 of the Policy Wording. The causes of events not covered are described under When you are not covered. If your vehicle is unregistered section 1 of the Policy Wording will operate. Section 2 of the Policy Wording does not apply. This cover provides insurance against theft or accidental loss or damage to your vehicle. 18

21 Mercedes-Benz Insurance Section 1: Loss, damage or theft of your vehicle What you are insured against We cover you against loss or damage to your vehicle shown in the Policy Schedule occurring during the period of insurance depending on the type of cover you have selected. (a) (b) (c) (d) your vehicle, original Manufacturer s standard accessories, standard tools, standard appliances or standard options including built in radio receiver, CD and/or cassette player, air-conditioning, or any gate, chain, strap and tarpaulin attached to or within your vehicle, any fixed (built in) unspecified accessories up to $2,500 (limited $500 per item), any additional equipment or accessories, provided they have been advised to us and we have agreed to cover them. What we will pay Basis of settlement We will, at our option, repair, reinstate or pay the amount of the loss of or damage to your vehicle and items referred to in items (b), (c) and (d) above under What you are insured against, at the time of such loss or damage, provided such payment does not exceed the market value or the sum insured whichever is the lesser amount, or agreed value depending on the cover stated on the Policy Schedule. If it is necessary to repair your vehicle to a better condition than it was in before the loss or damage, then we may ask you to contribute the additional amount to repair it to the better condition. We are entitled to replace damaged parts with new parts or used parts of similar age and condition and to those being replaced. Salvage If your vehicle is declared a total loss and we pay according to the cover provided by this Policy, you must allow us, if we require possession of your damaged vehicle. If we do not take possession of your damaged vehicle, you cannot abandon your responsibilities for it. Genuine Parts guarantee If your vehicle is damaged in an accident we will repair or replace any damaged part where required and incident related with a genuine Mercedes-Benz part for your make and model. We will only do this if the part is locally available at the time of repair. 19

22 Unavailable Parts In the event of an incident covered under this Policy, should any part of your vehicle and/or other insured property become unavailable in Australia, we will reimburse you, in accordance with the basis of settlement under What we will pay - Basis of settlement, but in no circumstances will we be liable for more than the cost of the parts plus the cost of freighting such parts by sea transport. Should the cost of these parts plus the cost of the repairs exceed the sum insured or market value, whichever is the lesser, we reserve the right to declare the vehicle a total loss. Financier If your vehicle is the security for any finance arrangement and the name of the financier is noted on the Policy Schedule, then we have the right to make claim payments to the financier, and any payment made to the financier will satisfy our obligation to you under this Policy for the amount paid. Section 2: Third party liability - (applicable to registered vehicles only) What you are insured against Damage to property Property damage Provided your vehicle is registered in accordance with the requirements of State and or Territory laws, we will cover the amount you may be held legally liable to pay for accidental damage to property belonging to others occurring during the period of insurance (excludes goods carried) caused by or arising out of: the use of your vehicle or any trailer or caravan attached to your vehicle, whether or not it belongs to you, goods falling from your vehicle, the transportation of dangerous goods as defined. The maximum amount we will pay under this clause is $1,000,000 unless specified elsewhere in your Policy Schedule, any person who is driving, using or in charge of your vehicle with your permission as if they were you and provided they are not entitled to indemnity under any other policy or statute and provided such cover is not otherwise excluded. Pollution Cleanup costs following pollution or contamination of water, land or the atmosphere following an event covered under the Policy. The maximum amount we will pay under this clause is $1,000,

23 Mercedes-Benz Insurance Substitute vehicle We cover your legal liability to pay for accidental damage to property caused (otherwise covered under this section) by a vehicle being used by you as a substitute vehicle while your vehicle is being serviced, repaired or is not driveable. We give you this benefit only if: one substitute vehicle is being used at any one time in place of your vehicle, the substitute vehicle is not already covered under another insurance policy, and the substitute vehicle is not owned by you and you have the owner s permission to drive it. Your employer s or principal s liability We will pay the amount your employer, principal or partner may be held legally liable to pay, for accidental damage to property (which is otherwise covered under this section) while you are using your vehicle on their business, as long as it is not a use that is excluded by this Policy as described under Use of the vehicle. Your liability as principal We will cover your legal liability to pay for accidental damage to property belonging to others in respect of any motor vehicle not owned or supplied by you or hired to you, which is in the charge of or is being driven by a person authorised to use the motor vehicle on your behalf and in connection with your business. Supplementary bodily injury We will pay the amount which you, or any person driving, using or in charge of your vehicle with your permission may be held legally liable to pay by way of compensation or damages for death or bodily injury to persons arising out of the use of your vehicle in Australian States and Territories only. We do not cover legal liability for death or bodily injury to: (a) (b) you or any person driving, using or in charge of your vehicle an employee of yours or who is deemed by any law to be your employee, arising out of their employment with you. We do not provide cover: (a) (b) if your vehicle is not registered, if you or any person using your vehicle: is wholly or partly covered under any compulsory statutory insurance scheme or accident compensation scheme, or 21

24 would have been entitled to be covered under any such scheme as it existed at the commencement date of the relevant period of insurance, even though there may have been a change in the law during that period of insurance, or would have been entitled to be covered under any such scheme if it were not for the application of any excess or deductible applying under the scheme, or would have been entitled to be covered under any such scheme had cover not been refused because you did not: register your vehicle, apply for cover under the scheme, comply with a term or condition of the scheme, (c) (d) whilst your vehicle is being loaded or unloaded, if your vehicle is registered in the Northern Territory of Australia. Legal costs We will pay your reasonable legal costs and expenses in defending or settling claims if you have our agreement in writing. We pay this in addition to the amount payable under Damage to property and Supplementary bodily injury. What we will pay The maximum amount we will pay under section 2 of this Policy Wording in respect of all claims arising out of one incident or series of incidents arising out of one cause or event will not exceed: the amount stated in section 2, for the transportation of dangerous goods $1,000,000 or pollution $1,000,000 where they apply, or $32,500,000 for other losses, any one event under section 2. What you are not insured against Property damage - property in your care, custody or control We do not cover the legal liability of you or the driver of your vehicle, for damage to any property belonging to you or the driver of your vehicle or any property belonging to any other party in your or the driver s care, custody or control, except for premises leased or rented to you or where specified in additional benefits for non-owned trailers. However, we will not treat your employees or visitors vehicles including their contents while contained within a car park owned, operated or provided by you, as property in your care, custody or control. 22

25 Mercedes-Benz Insurance Additional benefits We give you these additional benefits following loss or damage to your vehicle insured under this Policy: Towing costs We will cover the costs of towing your vehicle, plus the reasonable cost of protecting your vehicle: to the nearest repairer, place of safety, or to any other place that we first approve following loss or damage covered under this Policy. Redelivery We will cover you for up to $3,000 to return your vehicle to its normal parked address, following repairs to your vehicle provided: the situation where your vehicle was repaired was more than 150 kilometres from your vehicle s normal parked address. Recovery costs following theft If your vehicle is stolen and found we will cover you for up to $5,000 to return your vehicle to its normal parked address. The cost of repatriating your driver following theft or accident We will cover you up to a maximum of $3,000 for the reasonable costs of overnight accommodation and returning an insured driver to the point of departure or at your option to the driver s destination provided: your vehicle was more than 150 kilometres from its normal parked address or point of departure at the time of the loss or damage, and the vehicle was being used in connection with your business, and the costs involved do not relate to emergency medical transportation, and you had not intended to pay for overnight accommodation in any event. Trailer cover We will pay for theft, or accidental loss or damage to any trailer with a gross vehicle mass of less than 2,000 kilograms (other than a caravan) which is owned by you while it is: attached to your vehicle, or detached from your vehicle but within your business premises or the domestic land boundaries of your usual home as long as it was not in a common area of home units, flats and the like. 23

26 We do not pay for any property in or on the trailer. The maximum amount we will pay is the market value of the trailer, limited to $1,000. Automatic additions We will cover you for any additional or replacement vehicle(s) of a like kind or similar nature to those vehicles presently insured under this Policy, that you purchase or lease (not hired) during the period of insurance for thirty (30) days. If before you have given us full details, the replacement vehicle is damaged or stolen, the maximum amount payable is the purchase price of the replacement vehicle up to $300,000. If you give us details of any new or replacement vehicle within thirty (30) days of its purchase or lease, we will insure it for the remainder of the period of insurance, as long as it is acceptable to us and you pay any additional premium that we may require. If you do not advise us within thirty (30) days of purchase or lease no cover is available. Breach of general policy conditions A breach or non-compliance with any general policy condition without the knowledge of you or any responsible officer will not affect your right to the cover under this Policy. However where you or any responsible officer becomes aware of such breach or non-compliance you will notify us immediately. If the risk is acceptable to us we will insure it for the remainder of the period of insurance and you will pay any extra premium we may require and comply with any additional conditions we may impose. Removal of vehicle debris We will cover you up to a maximum of $50,000 for the necessary and reasonable costs which you are legally liable to pay to clean up and remove any vehicle debris. This is limited to the vehicle itself and does not include any goods falling from your vehicle. Sign writing We will cover you for loss or damage to sign writing or fixed advertising signs or materials forming a permanent part of your vehicle at the time of the loss or damage. Maritime liability If your vehicle is being transported by sea between Australian ports, we will cover you for your contribution for your vehicle if general average is declared. General average is declared when goods or cargo are thrown overboard or other steps are taken to safeguard the vessel and the remaining property on the vessel. All cargo owners share the expenses or salvage costs incurred by a ship owner in preserving the vessel and cargo including claims costs incurred by cargo owners. 24

27 Mercedes-Benz Insurance Waiver of subrogation We will not seek recovery between the persons, companies or firms named in the Policy Schedule as the insured. New vehicle replacement We will replace your vehicle with a new vehicle of the same make, model or series so long as it is available in Australia and: your vehicle is a total loss, and you purchased it new from the manufacturer or their dealer, and your vehicle is less than twenty four (24) months old from when it was first registered, and your declared sum insured equates to no less than 90% of market value, and where your vehicle is financed, your financier has given us written consent. If a new replacement vehicle is not available, we will replace your vehicle with the nearest equivalent vehicle available, so long as it is available in Australia. If we cannot agree on a replacement vehicle, we will pay you the amount it would cost to buy a new vehicle the same as, or a near equivalent of, the vehicle which needs replacing. If an excess is applicable it is payable to us before we replace your vehicle. We also pay the registration for the period registered but not exceeding twelve (12) months, stamp duty and dealer charges on the new vehicle but any refund of registration fees or stamp duty applicable in respect to the old vehicle must be refunded to us. Where your vehicle does not meet all of the criteria above, all total loss claims will be settled on the declared sum insured or the current market value at the time of the loss or damage, whichever is the lesser. Where you choose to insure the replacement vehicle with us and we accept the risk, we will charge you a pro rata premium from the date of acceptance to the expiry date of the Policy. Car sharing Payment made by passengers, as part of a car sharing agreement for social or other similar purpose, including travelling to and from work will not constitute the conveyance of passengers for hire, fare or reward provided that the total contribution received for the journey does not involve commercial use for profit. 25

28 Hire car cost following theft If your vehicle is stolen and the theft is covered under this Policy, we will cover you up to a maximum of $5,000 for the reasonable costs of hiring a similar vehicle provided: we do not pay for hiring charges incurred after the date of recovery of your vehicle if it can be driven, cover is limited to thirty (30) days, and cover stops once we pay a claim, or the vehicle is repaired if undrivable. You will need to organise and pay for the hire vehicle. We are not responsible for ensuring that a hire vehicle is available. You must also give us a copy of the rental agreement and any receipts for the vehicle before we will reimburse you. We do not pay for: running costs, including the costs of fuel, damage to the hire vehicle, any insurance, insurance excess or other costs you may be liable for under the hire vehicle rental agreement. No claim discount benefit If your vehicle is insured for comprehensive cover and you do not have a claim, we apply a discount off your next year s renewal premium. This reward is called the No claim discount. The more claim free years that you have, the greater the percentage of discount, until you reach the maximum level of discount after five (5) years. Even if you have a claim where your no claim discount would be affected, you may not lose all of your no claim discount. If you have a claim and you have not accumulated any no claim discount we may increase your invited renewal premium. We also accept the number of claim free years that you may have accumulated with another insurer in calculating your no claim discount. Accidents/losses affecting your no claim discount When calculating your renewal premium we take into account accidents/losses that occur during the period of insurance that affect your no claim discount. Faultless no claim discount If your vehicle has been involved in a collision with another vehicle (and not any other type of accident) we will not penalise your no claim discount entitlement when you renew your Policy if: you can satisfy us that the collision was totally the fault of the driver of another vehicle, and you tell us the registration number of the other vehicle and the full name, licence number and address of the other driver. 26

29 Mercedes-Benz Insurance We give this benefit only if we are allowed legally to recover the amount of any loss including any applicable excesses from the third party. This benefit does not apply to windscreen or window glass damage only claims. Funeral expenses As a result of an accident in an insured vehicle covered under the Policy your driver sustains a fatal injury, whether or not death occurs at the time of the loss we agree to pay for associated burial or cremation costs and include travel costs within Australia for the deceased driver or any member of the immediate family. This benefit will not be reduced by any accident compensation and we will pay up to $5,000 in total any one period of insurance. Tyre replacement If we agree to pay a claim and any tyre cannot be used as a direct result of damage sustained from a loss covered under this Policy, we will pay for the new replacement cost of a similar make and specification. This benefit is applicable provided that the condition of the damaged tyres remaining tread conforms with legal requirements at the time of damage and it was not a recapped or retread tyre. Locks and keys If your keys are lost, destroyed or damaged, or if there are reasonable grounds to believe the keys may have been illegally duplicated, we will pay the costs of replacing and recoding the locks and/or keys. We will pay up to $5,000 during any one period of insurance and this benefit is not subject to loss or damage to the vehicle covered under the Policy. Fire brigade and/or emergency services charges If we agree to pay a claim under the Policy and you are legally liable for fire extinguishment costs charged by the Fire Brigade or emergency services costs, we will pay up to $20,000 during any one period of insurance only. Driver s personal property We will cover the loss or damage to wearing apparel and personal property belonging to the driver not otherwise insured while contained in the insured vehicle provided: (a) (b) money, securities, jewellery, furs, mobile phones, personal music devices, portable GPS, tools of trade and laptop computers are excluded from this cover, and the maximum amount we will pay is limited to $2,000 arising from any one incident. 27